Businesses are reporting that coronavirus is starting to impact their supply chains.
That’s according to a survey by the Institute for Supply Management of over 600 US companies which found that nearly 75% of firms are seeing capacity disruptions within their supply chains as a result of transport restrictions due to the pandemic.
More than six in 10 companies are also experiencing delays in receiving orders from China, whilst over half are struggling to get information out of the most affected country.
Thomas Derry, CEO of ISM commented on the results that: “The story the data tells us that companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak.
“For a majority of U.S. businesses, lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move product to the United States – even if they can get orders filled.
Companies with a more diversified supplier-base are reeling slightly less, especially compared to firms who rely on the Chinese markets for key components or, indeed, the vast majority of their imports.
As a result of the disruption, one in six companies have downgraded revenue targets.